Strong economy should drive new deal for local government
11 May 2004
Tonight's Federal Budget addresses a number of concerns for local communities, with additional funding for important transport, environment and human services initiatives, the President of the Australian Local Government Association, Councillor Mike Montgomery, said tonight.
"In particular, local government welcomes the allocation of funds in the forward estimates for the renewal of the critically important Roads to Recovery program, as announced in January this year," Cr Montgomery said.
"We are also pleased that $810m is committed over three years for regional land transport programs under the AusLink program.
"There is also $26.3m in supplementary local road funding to South Australia, which Local Government Minister Ian Campbell said is a 'speedy initial response to one of the findings of the Hawker Report into local government funding'.
"We look forward to the Government's full response to this key report which has identified major deficiencies in intergovernmental financial relationships and local government funding.
"ALGA is also pleased to see that the Government has agreed to meet the full costs of new security arrangements for regional airports. This comes after strong representations by ALGA.
"We applaud the additional funding for the Natural Heritage Trust program. We will, however, seek changes to the program to ensure spending is optimally targeted and local government is better engaged. The concept is a good one, but needs fine tuning.
"There is additional funding for child care and family day care places. Local government is Australia's largest provider of family day care services.
"ALGA is pleased to see the National Strategy for an Ageing Australia renewed. ALGA is working with the Minister for Ageing, Julie Bishop, on aged care issues and we look forward to further developing this partnership to assist councils meet the challenges and opportunities presented by an ageing population.
"Most importantly, the strength of the Australian economy also highlights the Australian Government's increasing capacity to reform federal/local government financial relations to place Australia's 700 councils on a more secure and sustainable financial footing.
"This issue is being addressed through the Australian Government's response to the Fair Share report on cost shifting and local government finances, tabled in Federal Parliament in November last year.
"The report highlighted the burden placed on local government by the cost shifting practices of state - and to a lesser extent - federal governments and the limited ability local government has to raise its own revenue.
"Local government wants to see the archaic system of financial assistance grants to local government replaced with access to a fair share of national taxation revenue.
"This agenda needs to be embraced by the Council of Australian Governments in order to secure the future of local government as an equal and valued partner in the Australian federation," Cr Montgomery said.
- Contacts
- Cr Mike Montgomery, ALGA President: 0427 542 051
- Rohan Greenland, Director Public Affairs: 02 6122 9434 or 0412 85 9434
